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Energy system
Methane Abatement
Global energy-related methane emissions remain near record highs
In recent years, many countries and companies have set targets to reduce methane emissions, with commitments now covering over half of global oil and gas production. However, methane emissions from the energy sector plateaued near record highs in 2025 – revealing a large implementation gap.
Still, there is significant scope for further action. Around 70% of fossil fuel methane emissions in 2025 came from the top 10 emitting countries. Meanwhile, the methane intensity of oil and gas production varies widely across countries – with the best performers scoring more than 100 times better…
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Country
New Zealand
New Zealand has a diversified energy mix, with significant production of both hydropower and geothermal. As the country embarks on an ambitious energy transition, it has many natural advantages, including a strong renewable resource base. New Zealand already has a low-emissions electricity system, with over 80% of electricity coming from renewable sources. The key challenge will be to decarbonise other end-use sectors through clean power and support investments in new technologies to achieve deeper emissions cuts across all sectors. Notably, the transport sector accounts for the highest share of emissions and is almost entirely dependent on oil while…
- Overview
- Energy mix
- Emissions
- Electricity
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+ 5 pages
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Technology report
May 2026
Vehicle software and software-defined vehicles
GEVO 2026 - Chapter 8 The transition from mechanical to software-based vehicle control has been underway for decades and has accelerated dramatically with the rise of EVs. Pure-play EV makers have pioneered the shift towards high-level, continuously updateable software-based vehicle control, speeding up the development and rollout of new features. Vehicles are evolving into software platforms for which users can access subscription‑based premium features, in the same way as for smartphones. A new design paradigm is emerging, with EVs at the forefront The digital transformation of the car industry is most evident in the emergence of software…
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Country
Nicaragua
The National Energy Policy of Nicaragua establishes a policy framework for the development and exploitation of renewable sources. The law sets the objective of prioritizing the use of renewable energy in the national energy mix and of stabilizing energy prices using renewables.
- Overview
- Energy mix
- Emissions
- Electricity
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+ 5 pages
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Energy system
Grid-scale Storage
Country and regional highlights
Major markets target greater deployment of storage additions through new funding and strengthened recommendations
Technology deployment
Pumped-storage hydropower is still the most widely deployed storage technology, but grid-scale batteries are catching up
Innovation
While innovation on lithium-ion batteries continues, further cost reductions depend on critical mineral prices
Policy
Investment
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Country
Equatorial Guinea
Electrification rates are relatively high in Equatorial Guinea at 66%. The country began oil production in the late 1990s and began LNG exports in 2007.
- Overview
- Energy mix
- Emissions
- Electricity
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+ 5 pages
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Sector
Industry
…this trend by joining initiatives to purchase near zero-emission industrial products.
Develop the supporting infrastructure for industrial decarbonisation
Due to long lead times, supporting infrastructure could become a significant bottleneck to significant action on industrial decarbonisation before 2030. Governments have a crucial role to draw up a long-term vision and need to send clear and early signals to developers and system operators. In addition, policies and regulations need to be put in place to reduce permitting times without undermining environmental standards.
Substantially increase investment in RD&D of essential near zero-emission industrial technologies
Innovation this decade will…
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Energy system
CO2 Transport and Storage
Country and regional highlights
Development in major regions has advanced significantly in 2023, and some countries have announced first-ever projects
Activity
Dedicated CO2 storage capacity is matching capture plans as infrastructure-specific announcements surge
Technology deployment
Pioneering shipment of CO2 for dedicated storage in Europe paves way for future CO2 shipping ventures
Innovation
Policy
Government support for CO2 transport and storage infrastructure is growing
Acknowledgements
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Statistics report
Sep 2025
Cost of Capital Observatory
Tracking the cost of capital for clean energy projects in emerging and developing economies The Cost of Capital Observatory is an initiative from the IEA, the World Economic Forum, ETH Zurich and Imperial College London. The aim of the Observatory is to increase transparency in the energy sector and inspire investor confidence, especially in emerging and developing countries where data on financing costs is scarcer.The Observatory is divided into three sections:A Dashboard that provides free data on the cost of capital for energy projects in emerging and developing economies, updated with 2023 and 2024 data in July and…
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Country
Portugal
Portugal is supporting decarbonisation through a wide variety of measures, such as, coal-fired generation was phased out in 2021. Portugal is further developing its large hydropower fleet, including additional capacity of pumped hydro storage. Portugal is an international leader for integration of wind generation, and auctions are driving rapid deployment of PV and battery storage. Portugal is pushing for better electricity interconnections with the rest of Europe. Portugal’s National Energy and Climate Plan sets 2030 targets for emissions reductions, energy efficiency and renewable energy that aim to put the country a path to achieving cost effective carbon neutrality…
- Overview
- Energy mix
- Emissions
- Electricity
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+ 5 pages